경 제 학(영어능통자) 1 2
경 제 학
2011년 시행 5등급(외무) 공채 제2차시험(영어능통자)
응시번호 : 성명 :
제 1 문. Assume that there are two firms, A and B, in the market, and two inputs, capital K, and labor L. The production functions of firms A and B are Y＝K1/2L1/2 and Y＝ Min{K, L}, respectively. The unit prices of capital (K), labor (L) and output (Y) are 10,000 won, 10,000 won and 30,000 won, respectively.
(total 30 points) 1) How much should they, firm A and firm B, pay for 1 unit output of Y
and how much are the firms' related profits? (7 points)
2) Can you determine the ‘Returns to Scale’ of firm A's and B's production function? (7 points)
3) Who, between A and B, is more effective in production cost of one unit of output, and to what extent, when the unit labor price increases to 20,000 won, while the unit capital price is unchanged? (8 points)
4) If the labor union does not accept a decrease in employment, how will the result of 3) change? (8 points)
제 2 문. Currently the Chinese government has implemented a monetary policy with a continuous increase in the reserve requirement ratio of banks to fight an inflationary pressure. However, it does not seem to be effective considering a recent CPI growth rate of 5.4 % in March 2011 compared to a year ago.
(total 30 points) 1) Assuming that the Chinese government allows the exchange rate to float, analyze the effects of the monetary policy described above on GDP, investment, and trade balance of China based on an open economy macroeconomic model. (15 points)
2) If the Chinese government intervenes in the foreign exchange market to curb an appreciation of yuan, the Chinese currency, how will the effects of the monetary policy be different? Explain also policy alternatives to weaken the inflationary pressure. (15 points)
경 제 학(영어능통자) 2 2 제 3 문. The Korea-U.S. FTA and the Korea-EU FTA were signed in June 2007
and October 2010, respectively. The Korea-U.S. FTA is still awaiting ratification by both sides. Although the Korea-EU FTA was ratified by European Parliament in February 2011, its ratification has been delayed by Korean National
Assembly. (total 40 points)
1) Explain potential economic opportunity costs to be caused by the delayed ratification of the Korea-U.S. FTA and the Korea-EU FTA on the Korean economy. (15 points)
2) The delayed ratification of the Korea-U.S. FTA and the Korea-EU FTA by Korean National Assembly is likely attributed to the opposition of interest- vested groups. Explain with the Heckscher-Ohlin model who is to suffer what losses and why. (10 points)
3) Explain what countermeasures the Korean government should take against potential losses Korea's FTAs with the U.S. and the EU may incur. (5 points) 4) What methods are usually taken to analyze potential economic effects of
an FTA? What are the differences among the methods? (10 points)
